1996 Z3 and Illinois Emissions

I have a 1996 Z3 1.9l 4cylinder that continues to "reject" emissions when I take it to the state testing station. There is no check engine light, no faults stored. The emissions testing station tells me and confirmed by local dealer, the monitors show up as "not ready". After spending $400+ with the local dealer replacing the post cat. O2 sensor. The story continues. Since the car does not "fail" emissions but is "rejected" I can not get a waiver. The dealer now wants to replace the DME (ECU computer) to the tune of $1500... the Car is only worth $5000 and I do not want to spend anymore money.

Has anyone experienced this? What other lower cost options would you recommend? Would appreciate any relevant advice. Are there some other things I should check?

No. The car was stored in the winter, but on trickle charger the whole time. Since coming out of storage I have driven may be 2000 miles, since there were no codes cleared, the dealer however did the drive cycle since the O2 sensor replacement, to see if the monitors come up as ready. Again, I have no fault codes...they simply will not come up as "ready" Also, confimed by the dealer.

4.In order to complete "Oxygen sensor heating, "Oxygen sensor", and "Catalytic converter" system tests, vehicle has to be driven in a fashion similar to "OBD Drive Cycle":
^First drive constantly with road speed between 20 to 30 MPH for approximately 4 minutes
^Then, drive constantly with road speed between 40 to 60 MPH for approximately 15 minutes. (Some vehicle coasting time should be included)
^The diagnostic sequence will be interrupted if one of the following conditions occurs:
^engine speed exceeds 3000 RPM, or
^driving speed exceeds 60 MPH, or
^large fluctuations in acceleration are requested.

I was told the dealer did the drive cycle after the o2 sensor replacement. Since getting the vehicle back from the dealer i drove it straight to the state inspection facility (may be 10 miles) and it again rejected (not ready).

I will verify with dealer in Monday to make sure drive cycle was performed.